Many astute investors understand that the property market has cycles that can go up and down in sales and don’t associate this with property management as well. The rental market is often driven by supply and demand and the seasons of the year. Unlike the buying and selling cycles, rental patterns are much simpler to predict as there are often yearly trends that can align with the seasonal changes.
Summer: It is when the sun is shining and the days are warm that we are inclined to consider significant life changes, such as relocating, children moving out of home, professionals being reassigned to new work areas and tertiary students are house hunting before commencing their studies. There is increased market activity, more people looking and as a result can increase the rent achievable in comparison to other seasons of the year (late Dec-early Feb).
Autumn and winter: As the days shorten and weather gets colder, rental enquiries tend to cool off. Most people are reluctant (unless it is necessary) to move in colder months, which means the vacancy rates increase and tenants start to negotiate on the weekly rent. It can also be more difficult to make a property look appealing in colder months (Mar-Aug).
Spring: This is traditionally considered the best season to sell, but not always the best time to rent. Tenants can be awaiting job transfers, children are busy finishing school and preparing for exams and people are reluctant to move before the busy Christmas and holiday period (Sep-Nov).
As your managing agent we understand rental trends. We can negotiate tenancy terms (i.e. 8 months instead of 6 months) and increase our tenant and property marketing around the quieter times of the year.